The business case for fairness

Your editorial “No retreat from freedom" (January 9) is only half right. You are right to criticise [political theorist] Francis Fukuyama when he calls for a retreat from globalisation (“Future of History", Review, January 6).

Properly regulated free trade and commerce is a good thing. You are also right to remind Australian governments of the importance of flexibility and competition for productivity.

However, you don’t adequately appreciate the threat to all of this from citizen discontent over the distribution of the burdens and benefits of globalisation.

For globalisation to be sustainable it needs government taxation and expenditure policies that promote equality. The state under modern capitalism has become too soft on tax evasion and avoidance, too supportive of “middle-class welfare", and in Australia’s case at least, too complacent about inequalities in health and education.

Right-wing politicians recognise the discontent but believe divide-and-rule populism and social conservatism will see them through. It’s a dangerous game which can get out of control all too easily.

That so many in the business community support it is a major problem if the nation is to build its productivity. In the social contract between people and government, fairness matters – it’s good in itself and it legitimises the freedoms needed for the market.